{"id":329,"date":"2016-04-19T11:40:42","date_gmt":"2016-04-19T09:40:42","guid":{"rendered":"https:\/\/vwg.nl\/uncategorized\/bedrijfsopvolgingsfaciliteit-ook-voor-vastgoed\/"},"modified":"2026-03-03T10:32:41","modified_gmt":"2026-03-03T09:32:41","slug":"business-succession-scheme-including-for-property","status":"publish","type":"post","link":"https:\/\/vwg.nl\/en\/bedrijfsopvolgingsfaciliteit-ook-voor-vastgoed\/","title":{"rendered":"Business succession scheme also available for property"},"content":{"rendered":"

\"BOF<\/p>\n

The Supreme Court has, in a judgement of 15 April 2016<\/a> confirmed that the business succession scheme (BOF) under inheritance and gift tax legislation can be applied to the acquisition of shares in a property company. We describe this extremely generous business succession scheme in our factsheet on gift tax exemptions<\/a>.<\/p>\n

Tangible business<\/h4>\n

The name of the facility says it all: it must be a company<\/strong>. The main condition for the application of the business succession scheme is therefore that (part of) a tangible business is bequeathed or gifted. Another important condition is also reflected in the name of the scheme: it must concern succession<\/strong>. You can read about this condition in our article BOF\u2019s demand for continuation is uncompromising<\/a>.<\/p>\n

Property<\/h4>\n

The operation of property is not usually carried out in the form of a business. After all, property is often held as an investment. The Supreme Court has now confirmed that, under certain circumstances, the operation of property may constitute a material business. The relevant criteria for this are set out in the judgment confirmed by the Supreme Court in Arnhem-Leeuwarden Court of Appeal<\/a>.<\/p>\n

According to this Court, an undertaking is: a sustainable organisation of labour and capital, aimed at participating in society, with the objective of making a profit. With regard to the operation of property, this is further defined by the requirement that it must be demonstrated that:
\n\u2013 the work carried out in relation to the property, in terms of its nature and scope, goes beyond normal asset management;
\n\u2013 with the aim of achieving a higher return than with standard asset management.<\/p>\n

Burden of proof<\/h4>\n

The party invoking the business succession scheme must prove that the operation of the property qualifies as a material business. This proof will have to be provided in each individual case on the basis of the specific facts and circumstances at each separate point in time when the business succession scheme is invoked.
\nThe Tax and Customs Administration can sit back and relax. In practice, this is exactly what it does by requiring (whether justified or not) a highly detailed substantiation of a claim under the business succession scheme in the form of the so-called \u2018catalogue of circumstances\u2019.<\/p>\n

The Arnhem-Leeuwarden Court of Appeal did, however, rule that not only the direct return (i.e. the rent less the costs), but also the indirect return (i.e. the increase in the property\u2019s value) must be taken into account. The Tax and Customs Administration argued that only the direct return was relevant.<\/p>\n

According to the Court, when assessing the nature and extent of the work involved in the operation of the property, one must not look solely at the company\u2019s own employees. This also includes outsourced work that is supervised and the work of external experts hired on a project basis.<\/p>\n

Income tax<\/h4>\n

The concept of a \u2018material undertaking\u2019 is not only relevant to inheritance and gift tax. Where the shares in the property company qualify as a substantial interest, the carry-forward of the income tax claim can only take place to the extent that the company carries on a material business.<\/p>\n

Transfer tax<\/h4>\n

In addition to inheritance and gift tax and income tax, transfer tax may be payable on the transfer of shares in a property company. This is the case when the shares are treated for tax purposes as immovable property.<\/p>","protected":false},"excerpt":{"rendered":"

De Hoge Raad heeft in een arrest van 15 april 2016 bevestigd dat de bedrijfsopvolgingsfaciliteit (BOF) in de erf- en schenkbelasting kan worden toegepast op de verkrijging van aandelen in een vastgoed-B.V. Wij beschrijven de uiterst riante bedrijfsopvolgingsfaciliteit in onze factsheet over de vrijstellingen schenkbelasting. Materi\u00eble onderneming De naam van de faciliteit zegt het al: […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-329","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/329","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/comments?post=329"}],"version-history":[{"count":0,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/329\/revisions"}],"wp:attachment":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/media?parent=329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/categories?post=329"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/tags?post=329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}